, Columnist
Post-Lehman Path Makes a Case for Buying the Rout
Anyone who bet on US stocks in October 2008, well before the market bottomed, would have been up 440% by the peak last year.
Consumers still have a lot of cash in their pockets.
Photographer: David Paul Morris/Bloomberg
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People are bailing out of equities. Thursday’s stock market action could fairly be called a rout. What to do?
Most of the time, equities go up. It’s better to buy them when their price has just fallen a lot. You buy them cheaper that way. And hanging around for the bottom might make a lot of money, but in the long term the natural propensity of share prices to rise will probably give you a good deal.